Financial freedom means different things to different people. Freedom suggests being able to make one’s own decisions and getting what one wants. According to the Consumer Financial Protection Bureau, having the financial freedom to make choices to enjoy everyday life is one of the elements of financial well being. In most cases, what enables you to do or get the things you want, is money.
Financial freedom, therefore, enables you to achieve your goals. Your definition of financial freedom could be to have a secure future where all your needs are met, spend more time with your family, or to have a job that you love.
Below I discuss 3 tips to consider on your journey toward financial stability and freedom.
Plan Your Finances Like You Plan Success
Does success in business or career necessarily translate to financial freedom? Whatever your definition of financial freedom is, are you working towards achieving it? Despite successes achieved in careers and business, women fall behind when it comes to planning and working towards their financial well-being and security.
According to a study by Financial Finesse, only 43% of women interviewed said they were confident about their money – despite having good jobs and access to financial coaching, and this compared to 56% of men.
Financial freedom is good but requires some work and attention. To achieve your goals and financial freedom, you need to prioritize your finances accordingly by making effective decisions and taking control. Just like your professional and entrepreneurial endeavors, you need to have a good and robust financial plan, as well as adopt cost-effective and savings strategies.
Ensure You’re Earnings
Whether with a side hustle or corporate career, to plan and work towards your financial freedom, you should be actively earning money. Women receive earnings below levels expected for their level of expertise, and earn less compared to their male counterparts. Labor Department data show that women earn on average only 80 cents for every dollar earned by a man. That disparity widens even further when it comes to multicultural women with Black women and Latinas making 63 cents and 54 cents to the dollar of their White, male counterparts, respectively.
Women tend to undervalue their expertise or charge less for their business services, which speaks to the confidence gap that exists between women and men. Receiving less money, therefore, means that women’s goals and financial freedom suffer. To achieve your goals, you should start taking the steps, such as negotiating higher salaries and adopting effective pricing strategies for your goods and services to ensure you are receiving good income to help you succeed.
Manage the Money You Owe
You should manage your debts well and use it to your advantage when working towards your financial freedom. Any debts you currently have should not stop you from taking control of your finances. Most women are burdened by debt, especially student loans. Women hold two-thirds of America’s student loan debt, and this can be a hindrance to their efforts for financial wellbeing. To ensure that you achieve your financial success, you should review your current situation and decide on your options, such as using debt consolidation loans to help you stay in control of your student loans and other debts.
Achieving financial freedom requires that you adopt good financial practices such as budgeting, managing cost, building savings, and profitable investments. In addition, dealing with low earnings and debt management will help to ensure a higher chance of financial success.